- Recent on-chain data showed a sharp rise in AVAX’s average transaction size.
- Meanwhile, whale activity has been increasing steadily, suggesting that large holders may influence future price movements.
As a seasoned crypto investor with a knack for spotting trends and interpreting market signals, I find myself intrigued by the recent developments surrounding Avalanche [AVAX]. The surge in average transaction size, coupled with the rise in whale activity, paints an interesting picture of potential growth.
Over the past month, Avalanche [AVAX] has experienced significant surge, climbing an impressive 93.58%. But its rapid advance seems to be tapering off, as the token saw only a minor increase of 3.77% in the last day.
As a crypto investor, I’ve noticed that although AVAX has made significant strides, according to AMBCrypto’s analysis, it hasn’t quite solidified a clear upward trend yet.
The behavior of whales (significant investors) and other crucial elements are expected to significantly influence if the asset can rebuild its pace and potentially reach the $65 level again.
Surge in AVAX purchases
In the last day, the typical transaction size on AVAX has experienced a substantial surge, reaching an impressive peak of approximately $3,687.7. Over the past week, it’s averaged around $2,935.71.
The pattern indicates traders might be buying more AVAX at once in each transaction, hinting at an increased interest or demand for this asset. This heightened interest could potentially elevate its worth, possibly triggering a spike in prices.
This week’s transactions have seen the largest average size since early November, notably peaking on December 8th, where a significant surge occurred alongside persistent price increases.
I observed an uptick in transaction values, even though there was a minor dip of 1.23% in the number of active addresses engaging with AVAX. This suggests that despite fewer market participants, each transaction on average saw a higher value.
Generally speaking, when the number of active addresses decreases, it tends to be associated with a drop in price. However, Avalanche (AVAX) bucked this trend.
According to additional examination by AMBCrypto, it appears that significant investors, known as ‘whales’, have significantly influenced the recent fluctuations in AVAX’s price. This underscores their substantial influence within the market.
Whales maintain a strong presence
As reported by IntoTheBlock, there’s been a 0.25% increase in large investor (whale) involvement in the Avalanche (AVAX) market during the last 24 hours, suggesting they still hold significant sway over the market.
Whales can be identified as wallets that possess over 1% of a given asset’s total amount. The moves made by these entities frequently influence market fluctuations considerably. At present, around ten such whale accounts together own approximately 27.38% of the entire AVAX token stockpile.
These addresses are grouped into either highly active or less active participants, with both groups significantly contributing to the upholding of AVAX’s worth even as participation from other market players has waned.
Together, these entities hold approximately 27.38 million AVAX tokens, marking an uptick of around 12.44% over the last seven days. Interestingly, this growth contrasts with a minor dip observed in overall market activity.
The divergence between whale activity and general market participation, alongside the corresponding price increase, suggests that whales are entering the market to acquire more AVAX for long-term holdings—a trend reflected in the recent price surge.
Can AVAX reach $65?
Currently, approximately 81% of Avalanche (AVAX) investors find themselves in a profitable position due to the price rise since they initially purchased, while just over 15% are experiencing losses on their investments.
In simpler terms, this considerable difference suggests that the ‘bulls’ (investors who believe prices will rise) have an advantage because a generally positive outlook in the market typically leads to more people buying.
Read Avalanche’s [AVAX] Price Prediction 2024–2025
Boosted whale actions and increasing investor curiosity might intensify this upward trajectory, possibly pushing the token beyond its upcoming resistance level ranging from $54 to $80, setting a mid-point objective at approximately $65.
Should the present trend grow even stronger and a significant proportion of “profitable” addresses persist in amassing AVAX, there’s a strong possibility that the price of AVAX will surpass $65 and potentially maintain trading above this level.
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2024-12-08 12:08